Ohio Code 1761.11 – Notification of possession or liquidation of credit union
(A) The superintendent of credit unions shall give prompt notice to the applicable credit union share guaranty corporation whenever he takes possession of the property and assets of a participating credit union. The superintendent shall give further prompt notice whenever he determines to liquidate the property and assets of such participating credit union.
Terms Used In Ohio Code 1761.11
- Account: is a n "advancement" as that term is used in section 3901. See Ohio Code 1761.01
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Deficiency: means the difference between the guaranteed amount of an individual member's or, as described in division (B)(2) of section 1761. See Ohio Code 1761.01
- Participating credit union: means a credit union that has applied for and been admitted to participation in a credit union share guaranty corporation and whose participation has not been terminated. See Ohio Code 1761.01
- Property: means real and personal property. See Ohio Code 1.59
- Superintendent of credit unions: means the superintendent of the division of financial institutions of this state. See Ohio Code 1761.01
(B) When the property and business of a participating credit union has been liquidated or is in the process of liquidation and the proceeds of liquidation distributed are insufficient to pay the full guaranteed amount of each credit union share account, the corporation shall pay each such deficiency up to the guaranteed amount within thirty days from the date the credit union share account balance is verified. When such guaranteed amounts are paid, and after charging the amount thereof to undivided or retained earnings, each participating credit union’s account shall be reduced ratably based on the account balance for the total amount paid.
(C) When any member’s credit union share account is paid, the corporation shall be subrogated to all rights of the member, up to the amount paid by the corporation to such member.